FuelCell Energy FCEL Stock News

FuelCell Energy Inc (NASDAQ: FCEL) is rocketing in the market this morning after releasing its results for the third fiscal quarter of 2019. Not only did the company report incredible growth in revenue, it provided an update on its efforts to continue increasing shareholder value. Here’s the scoop:

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FCEL Stock Soars On Quarterly Results

The results released by FuelCell Energy this morning came via press release. In particular, revenue proved to be a big hit. In the third quarter, a license agreement with ExxonMobil (XOM) and an increase in Generation revenues associated with the Bridgeport Fuel Cell Project, led to revenue in the amount of $22.7 million. That’s an 88% year over year increase.

In the release, FCEL said that it ended the quarter with $16 million in cash on hand, showing strong sequential quarterly growth. Once restricted cash is included, the company ended the quarter with $45.8 million.

Importantly, the company is working to decrease its debt. In fact, Hercules senior secured debt dropped from $16.4 million at the end of the second quarter to $7.4 million at the end of Q3.

Moving forward, it looks like revenue growth will continue on the positive trend. In fact, the company’s contractual backlog is now up to $2.1 billion, showing strong growth from a backlog of $1.9 billion at teh end of Q3, 2018.

It’s also worth mentioning that the company has seen a drastic decrease in losses. During the quarter, net losses came to $8.3 million, or $0.18 per share. In the same quarter last year, net losses were $17.6 million, or $2.45 per share.

Outside of the financial aspect of the report, investors were also impressed with the operational update. In particular, FCEL pointed to the acquisition of a 14.9 megawatt Bridgeport fuel cell project that took place in May.

The company also reminded investors of a $10 million license agreement with ExxonMobil, the relaunch of the sub-megawatt distributed generation solution in European markets, a full year of strong performance at its 20 MW KOSPO project in South Korea and a Carbon Capture FEED study with Drax Power Station.

In a statement, Jason Few, President and CEO at FCEL, had the following to offer:

FuelCell Energy had a dynamic third quarter of 2019. The Company focused on numerous restructuring and improvement initiatives, resulting in an improved balance sheet, a leaner spending profile, and a reinvigorated team. We continued to build on our long-standing relationship with ExxonMobil, entering into a license agreement in the quarter. We continue to focus on execution of our projects, including nearing completion on our Tulare BioMAT 2.8 megawatt plant and commencing large-scale onsite work on the U.S. Navy base in Groton, CT. We have a lot more work ahead of us, but I’m encouraged by the progress made over the past several months as well as the team’s commitment and passion for customers and our business.

The Bottom Line

The bottom line here is that the third quarter of 2019 proved to be a great one for FuelCell energy and its investors. As a result, investors are reacting as could be expected, by sending the stock climbing.

At the end of the day, if FCEL continues effectively tackling its growth initiatives, the company could quickly work its way to profits. That’s especially the case when you take revenue growth into account. All in all, the report shows that the company is making big moves and heading in the right direction.

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